Technological capability, relational capability and firms' performance: The role of learning capability.
| Autor | Salisu, Yakubu |
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Introduction
Intense competition has undermined the performance of small and medium enterprises (SMEs) in developing economies as they try to expand the scope of their operation and market. The desire of SMEs firms to keep in pace with the development in the global technological business environment has been constrained by several factors which include inadequate commitment to acquire the new technologies, lack of technical and networking skills, inadequate human capital and improper choice of technology (MAN, 2017; Mefuna & Abe, 2015). Consequently, the industrial and commercial landscapes were dominated by foreign factors and products (MAN, 2017). Hence, African countries under the banner of the African Continental Free Trade Agenda have demonstrated commitment to improve the economic and commercial activities of the region through the enhancement of the SMEs firms' competitive advantage locally and at global front. In this regard, Nigerian Government has introduced several programs and policies such as the National Information Technology Development Agency, the National Industrial Revolution Plan, National Office for Technology Acquisition and Promotion, among others, to help SMEs firms improve the capacity to develop or imitate the universally acknowledged industrials technologies and enhance their ability in assimilating new technologies to satisfy the peculiar needs of the country (NIRP, 2014).
However, due to the dearth of open standards, SMEs need to create distinctive capabilities and product to effectively expand and internationalize their operations and survive the globalization effects (Rugraff, 2012).The resource-based view (RBV) and the dynamic capability view have for decades demonstrated the crucial role of capabilities in enhancing firm's competitive advantage and performance (Teece, Pisano, & Shuen, 1997; Barney, 1991; Wernerfelt, 1984). Therefore, technological capability and relational capability are essential dynamic capabilities that enable firms to achieve and maintain sustainable competitive advantage and superior performance in competitive global business environment (Yang, Xie, Liu, & Duan, 2018; Wang, Lo, Zhang, & Xue, 2006; Teece et al., 1997). However, inefficient capabilities have constrained the business activities and performance of SMEs (Sok, Snell, Lee, & Sok, 2017), especially, in African economies where human capital, technological, collaborative and innovative capabilities upset the competitiveness and performance of the sector (Asante, Kissi, & Badu, 2018; Akeyewale, 2018; Oyelaran-Oyeyinka & Abiola Adebowale, 2012). Nevertheless, extant literatures have established that technological, relational and learning capabilities are valuable, rare, inimitable and non-substitutable resources and dynamic capabilities that enhance the sustenance of competitive advantage and performance in rapidly changing environment (Yang et al., 2018; Pham, Monkhouse, & Barnes, 2017; Ahmad, Othman, & Mad Lazim, 2014). However, these capabilities have been studies on firms from plastic industry (Chantanaphant, Nabi, & Dornberger, 2013), professional and financial services (Ulbrich & Borman, 2017; Ainin, Kamarulzaman, & Farinda, 2010), healthcare, (Salas-Vallina, Lopez-Cabrales, Alegre, & Fernandez, 2017), constructions (Manley & Chen, 2015) and aviation industry (Rajasekar & Fouts, 2009), mostly from western developed world, the USA, Latin America and Emerging Asian economies.
Conceptualizing learning capability as mediator is consistent with the work of Hailekiros and Renyong (2016) and Wang et al. (2006). The concept of learning capability in the field of research and among practitioners has greatly grown over the years due to its importance to the dynamic business environment (Alegre & Chiva, 2008). Nevertheless, the concept of learning capability (Goh, Elliott, & Quon, 2012; Sok & O'Cass, 2011; Alegre & Chiva, 2008) emphasizes the importance of some facilitating factors for efficient organizational learning and innovative performance. Hence, technological and relational capabilities are essential dynamic capabilities in changing what the firm knows by internalizing new knowledge (Pham et al., 2017; Zawislak, Alves, Tello-Gamarra, Barbieux, & Reichert, 2013). These capabilities are therefore considered essential to the adaptation and assimilation of new knowledge and techniques to improve performance. Furthermore, Sukoco, Hardi, and Qomariyah (2018) sought for an investigation of the potential mediating role of learning on the relationship of firm's capabilities and performance. Nonetheless, limited attention has been given to the empirical examination of the mediating role of learning capability on the association of the technological and relational capabilities and the performance of SMEs in developing economies. Therefore, this study aimed to empirically examine the mediating role of learning capability on the relationships between technological capability, relational capability and the performance of SMEs in developing economies of Africa. In achieving this, the study answered the following research questions:
RQ1. Does technological capability significantly relate to SMEs performance?
RQ2. Is there any significant relationship between SMEs relational capability and performance?
RQ3. Does technological capability significantly relate to SMEs learning capability?
RQ4. Does relational capability significantly relate to SMEs learning capability?
RQ5. Is there any significant relationship between SMEs learning capability and performance?
RQ6. Does learning capability mediate the relationship between technological capability, learning capability and SMEs performance?
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Theoretical background and hypotheses development 2.1 Technological capability and performance
Technological capability has been described as the firm's ability to design and develop new process, product and upgrade knowledge and skills about the physical environment in unique way, and transforming the knowledge into instructions and designs for efficient creation of desired performance (Wang et al., 2006). Technological capability entails not only technical mastery capability, but also the capacity to expand and deploy the firm's core capabilities, and effectively combine the different streams of technologies and mobilize technological resources throughout the firms (Zawislak, Alves, Tello-Gamarra, Barbieux, & Reichert, 2012). Furthermore, technological capability comprises the body of practical and theoretical knowledge, procedures, experience, methods and physical equipment and devices (Ahmad et al., 2014). Technological capability represents a firm's superior and heterogeneous technical resources which meticulously related to the design technologies, product technologies, information and process technologies, sourcing and integration of external knowledge (Bergek, Tell, Berggren, & Watson, 2008). These components of technological capabilities are responsible for significant positive variation in firm's performance (Bergek et al., 2008).
Technological capability enables firm to identify, acquire and apply new external knowledge to develop operational competencies, which leads to the attainment of superior performance. Through effective technological capability, a firm creates and delivers new products and services in better and efficient way that best satisfies the customer needs, thus enhances the overall success of firm's new product development and performance (Wang et al., 2006). Hence, technological capability enables SMEs firms to endure the effects of dynamically changing business environment throughout the life of business, right from the startup to the age of corporate social responsibility. Effective development of technological capability in SMEs firms entails becoming open-minded to the development in technological environment, perpetual accumulation of valuable knowledge and deployment of the current technologies effectively (Ahmad et al., 2014; Bergek et al., 2008; Wang et al., 2006). Therefore, effective combination of appropriate operational capabilities enhances the strength of firm's technological capability. Technological capability has been established in allowing firms to develop and deliver valuable product or services to customers and ensure effective customer relationship which positively enhance performance (Reichert & Zawislak, 2014; Ahmad et al., 2014; Zawislak et al., 2013; Wang et al., 2006). Thus, this study hypothesizes that:
H1. Technological capability positively relates to SMEs performance.
2.2 Relational capability and performance
SMEs firms generally find it very challenging to penetrate into new and unfamiliar marketing environment mainly because of the resource constraint and strategic capabilities (Pham et al., 2017). The dynamic operating environment requires business firms to work with not only innovation partners, but also collaborates with all strategic public and private organizations to draw external information and resources to improve competitive position and performance (Kolk, Eagar, Boulton, & Mira, 2018). Thus, through relational capability SMEs can develop collaborative relationship to efficiently acquire new techniques, knowledge and information (Martins, 2016). This is specifically essential for business firms from less developing and emerging economies as they are lagging behind on the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets (Yiu, Lau, & Bruton, 2007). Hence, Lado, Paulraj, and Chen (2011) urged that SMEs firms must tirelessly cultivate and leverage relational capability to generate and provide superior customer's utilities. This has also been underscored by Ghane and Akhavan (2014), who mentioned that relational capability is critical to the execution of strategy and programs aimed at reducing customers' complaints, creating cordial relationship and...
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